Net Asset Value(s)

UK Mortgages Ltd - Net Asset Value(s)

PR Newswire

London, February 17

UK MORTGAGES LIMITED(a closed-ended investment company incorporated in Guernsey with registration number 60440)Final Net Asset ValueLEI 549300388LT7VTHCIT59

UKML RNS: Commentary accompanying UK Mortgages Limited December 2021 NAV

The UKML NAV per share was calculated for December 2021 month end at 80.41 pence per share, an increase of 1.47 pence per share.

The December NAV included the semi-annual recalculation of the Expected Credit Loss provision, under IFRS 9 accounting standards, which resulted in a significant reduction to the provision, uplifting the NAV by 0.49 pence per share. This was primarily due to a £4m improvement in arrears in the CHL portfolio, along with a decrease in the size of the TML portfolios due to mortgage repayments and thus a corresponding fall in provisions and some minor adjustments to our economic forecasts and stress weightings to reflect the improvement in the economic outlook and increased hopes of an impending end to the Covid-19 pandemic.

Further to this, the semi-annual recalibration of the hedge effectiveness also resulted in an increase of 0.35 pence per share to the NAV, as the swaps held against the portfolios of mortgage loans were deemed to be more effective than previously, partially due to the mortgage repayments in the TML portfolio, with a number of hedges having thereby expired, and secondly due to some refinements made to the hedging profiles of the portfolios during the second half of 2021.

Further to these semi-annual adjustments, the ongoing positive running income being generated by the Company’s underlying investments continued to increase, in the most part due to ongoing growth in the second Keystone portfolio (Cornhill No.7) and contributed the net 0.63 pence per share remainder (an increase of 0.04 pence per share from the previous month) of the positive NAV performance for the month.

The Company’s investments continue to perform in line with expectations, and further details will be available in the Company’s next factsheet.

Enquiries:Northern Trust International Fund Administration Services (Guernsey) LimitedAndrew Bonham 44 (0)1481 745302

Date: 17 February 2022